ThaiBev reports H1 FY2026 profit decline amid impairment loss despite strong Underlying growth
Thai Beverage reports a decline in half-year net profit due to impairment losses, even as underlying earnings and spirits sales show steady growth.
SINGAPORE – Thai Beverage, the maker of Chang beer, has reported a 3.2% decline in attributable net profit to 14.25 billion baht (US$435.96M) for the first half of fiscal year 2026 ended March, compared to 14.7 billion baht (US$449.73M) in the same period last year, citing an impairment loss from discontinued operations.
Despite the headline decline, underlying performance showed improvement. Net profit from normal operations rose 7.8% to 19.2 billion baht (US$587.38M), supported by stronger spirits sales and lower raw material costs.
Revenue for the period fell 2.5% year-on-year to 173.2 billion baht (US$5.3B), mainly due to weaker beer sales across key markets.
The company said it would maintain its interim dividend at 0.15 baht per share.
In the six months to March, revenue stood at 173.22 billion baht (US$5.3B), down 2.5% from a year earlier, while attributable net profit declined 3.2% to 14.25 billion baht (US$436.11M). However, underlying net profit increased 7.8% to 19.16 billion baht.
In the second quarter, ThaiBev reported a 1.4% rise in revenue to 86.52 billion baht (US$2.65B), while attributable net profit increased 9.4% to 7.37 billion baht.
The company’s beer division, which contributed 36.2% of first-half revenue, recorded a 5.4% decline in sales due to subdued demand in Thailand and adverse weather conditions in Vietnam. However, second-quarter beer sales rose 5.4% as volumes improved.
Thai Beverage Public Company Limited said recent policy developments in Thailand, including new alcohol restriction zones covering railway stations, trains and public parks, may continue to affect domestic consumption patterns.
The company noted that Thailand’s economy showed overall expansion driven by stronger domestic consumption and increased private investment.
“However, the impact of the conflict between Thailand and Cambodia, which affected border trade, tourism, and investment, along with persistently high household debt, remained significant challenges to Thailand’s overall economic recovery,” the company said.
Looking at international markets, ThaiBev highlighted continued economic growth in Vietnam, Malaysia and Singapore, which remain key regions for its operations.
“However, all three countries continued to face external risks, including geopolitical uncertainties, US trade policies, and the impacts of climate change,” the company added.
ThaiBev said the beverage industry in Thailand continues to face structural challenges, with growth expected to remain moderate in line with gradual recovery in tourism and domestic demand.
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